While technically swiping your card means you’re incurring debt, avoiding debt is absolutely possible. I’ve been doing it for two years now and, doing the math, I even ended up with all the advantage. Here are some of the financial killers that usually come with having a credit card and some suggestions on how to counter them.
Interest. Interest only kills when you don’t pay in full. So make sure that you pay the full amount on your statement every month. When gunning for installment purchases, make sure that you go for zero percent interest rates.
Annual fees. Quite honestly, I don’t get the point of annual fees. The bank or the card company already charges the merchant every time you use the card, so the fee’s just another way for the company to get money. The way I get around this is to use the points that I earn to offset the fee. This way, I don’t pay anything extra with my card.
Faud. Make sure that you keep your credit card in a secure place. Keep an eye on your card every time you use it. Review your statement and contest every item that’s not an authorized purchase. And if you find anything awry, push your case to the company to get it resolved.
